Directorate of Local Fund Audit Finance Department, Government of Odisha

Transcription

1 Directorate of Local Fund Audit Finance Department, Government of Odisha Empanelment of Chartered Accountant firms with the Directorate of Local Fund Audit, Government of Odisha for the year P a g e

2 Contents I. Background... 3 II. Scope of Work... 3 III. Reporting... 4 IV. Terms and Conditions... 5 V. Payment Terms... 5 Annexure Annexure P a g e

3 Terms of Reference (ToR) for Accounts Review Programme of Aided Educational Institutions under Directorate of Local Fund Audit (LFA) of the Finance Department, Government of Odisha I. Background 1. Directorate of Local Fund Audit (DLFA), Odisha is the Statutory Audit Organization of Government of Odisha. It has been functioning under the administrative control of Finance Department since 1948 & has been made a separate Directorate w.e.f. dt There are 26 District Audit Offices functioning in the State, each headed by a District Audit Officer. The Director of Local Fund Audit, Odisha is the Head of the Organisation. 2. The Director, LFA exercises the powers of Examiner of Local Accounts under the OLFA Act There are Officers like Joint Directors, Deputy Directors, Assistant Directors, besides Audit Superintendents & Auditors to assist the Director in discharging his duties as the Examiner of Local Accounts. The Organization undertakes audit of Panchayat Samities, Gram Panchayats, Urban Local Bodies, Development Authorities, Universities, Aided Colleges, High Schools, M. E. Schools, Endowment etc. Presently there are 16,316 numbers of Auditee Institutions in the State being audited by Local Fund Audit Organisation. 3. In view of the audit pendency, the Directorate of Local Fund Audit, Finance Department, Government of Odisha, in pursuance of Govt. in Finance Department Resolution No. 7401/F, dtd ,has been engaging Chartered Accountant firms in the process of accounts review since The Directorate intends to empanel Chartered Accountant Firms for conducting accounts review of Non-Govt. Aided Colleges during the year All Odisha based Chartered Accountant Firms and empanelled with Institute of Chartered Accountants of India (ICAI) in Bank Branch Auditors Panel for the year are eligible to apply for empanelment with the Directorate of Local Fund Audit, Odisha. II. Eligibility Criteria : a) Registered by ICAI. b) Empanelled to conduct bank audit in the state. c) Have a Head office in Odisha. III. Scope of Work 4. The CA firms selected for Accounts Review assignment shall be responsible for carrying out following activities with respect to the financial year under review at the college premises: i. Verification of all vouchers and supporting documents with respect to the proper sanction and approval by competent authority according to the delegation of financial power and compliance to laws and prescribed guidelines ii. Verification of entries in the books of accounts (Cashbook, General Ledger, Advance Ledger, Daily collection register, miscellaneous receipt books, Journal Book, Salary Register, attendance register, Cheque issue register, Grants received register etc.) in respect of receipts and expenditure of the institution. Examination of Bank reconciliation Statement with respect to entries in the cashbook and bank statement. 3 P a g

4 iv. Examination of utilization of grants received from Government of Odisha during the financial year under review. v. Examination of payments of Salary under Non plan, State plan and block grants scheme. vi. Examination of advances given and adjusted/recovered from staff and others. vii. Verification of Physical verification report on Cash and Fixed assets and consumables. viii. Working out of the head wise receipt- expenditure statement from the cash book and other related records. ix. Verification of such other records and preparation of statements, which are required for filling up the Accounts Review Report Format given in Annexure CA firms shall be required to help rectify the errors identified, if possible by them during the course of Accounts Review and report the balance errors/irregularities which remain unrectified with reasons as to why the same were not rectified. 6. The CA firms would also be required to report immediately to the respective District Audit Officer 1, wherever any serious irregularity or transactions involving mala fide, corrupt practices and gross indiscipline or any fraudulent transaction is detected by them. IV. Reporting 7. In the course of examination of the books of accounts, any discrepancy, which comes to the notice of the reviewer, or any queries, shall be put up in writing in form of half-margin memo before the Head of the Institution for his/her replies. The copies of such queries and replies thereto shall be appended to the accounts review report. 9. On the basis of the examination of books of accounts and replies received from the principal of the college, the CA firm shall duly fill up the findings of accounts review into the ALFA (Automation of Local Fund Audit) system within 7days after the Accounts Review. The Director, Directorate of LFA will provide the login details of ALFA System to the CA firms along with the allotment letter. 10. The concerned District Audit Officer, after due scrutiny of the accounts review report, will approve the report within a period of 30 days after submission of the report in ALFA system and thereafter will issue a certificate on satisfactory completion of CA firm s Accounts Review. 1 Details of concerned District Audit Officer will be provided along with an Appointment Letter 4 P a g e

5 11. The CA firm shall send a signed hard copy of the approved Accounts Review Report (generated by the ALFA system) to the respective District Audit Officer. 12. The CA firm shall send an invoice (format given in annexure-2) along with a copy of the Accounts Review Report Approval certificate issued by the concerned District Audit Officer to the Directorate of Local Fund Audit, Odisha or the concerned institution as applicable. 13. The respective institution will process the invoices within 30 days after submission of the invoice. V. Terms and Conditions 14. Period of Accounts Review: The CA firms empanelled would be appointed for a period of one year from May 2017 to Apr They may be allotted accounts for review during this period in the premises of Aided Colleges of Odisha. The first cycle of Accounts Review will start from 16 th May De-empanelment: The empanelled firms may be de-empanelled at the Director, LFA s sole discretion. If any serious acts of omission or commission are noticed in their working, their appointments may be cancelled and the matter may be reported to ICAI. 16. Expertise Required The CA firms selected shall at the minimum deploy following team to facilitate the accounts review process in each college: 1 Full time qualified CA 3 Full time Assistants (Article Assistants) 1-2 days input in a week from the Partner or Proprietor of the CA firm. VI. Payment Terms 17. Professional Fee will be paid to the firm as per the following schedule of fees depending on the type of college, per financial year, as given in table no.1 Table No.1: Fee per College Type of College Fee A Category aided Colleges Rs.30,000 + Service Tax & Swacch Bharat Cess B Category aided colleges C Category aided colleges Rs.20,000 + Service Tax & Swacch Bharat Cess Rs.15,000 + Service Tax & Swacch Bharat Cess 18. Travel, Accommodation and Subsistence cost (wherever applicable) will be paid in a consolidated form. This will be paid based on the distance between CA firm Office city/town (Head Office/ Branch Office nearest to the college) to college city/town as shown in the table no.2 5 P a g e

6 Table No.2 Consolidated Amount for Travel, Accommodation and Subsistence Cost Distance between CA city/town to Amount city/town College Within City/Town i.e., within 8 KM radius Nil Up-to 100 KMs Rs. 5,000/- More than 100 KMs up-to 200 KMs Above 200 KMs Rs. 10,000/- Rs. 15,000/- 6 P a g e

7 Annexure - 1 AIDED COLLEGES ACCOUNTS REVIEW REPORT FORMAT PARA: 1. Title Sheet DIRECTORATE OF LOCAL FUND AUDIT, FINANCE DEPARTMENT, GOVERNMENT OF ODISHA a) Name of the Institution: **** b) Year of Accounts under Review: **** c) Name of the Local Authority during i) the year of A/Cs under review Name of the Local Authority at the i) time of Accounts Review Accounts Review Report No: I d) Duration of Accounts Review: **/**/**** to **/**/**** No. of days consumed by: i. Non qualified staff (Audit Staff) ii. Qualified staff (CA) Mandays iii. Proprietor/Partner e) Name & Address of the C.A.Farm: **** ii) ii) **** **** f) Name of the LFA Reviewing Officer: **** g) Date of final review : **** PARA 2.Physical Verification Physical verification of cash and other items are done by us on..(date) and the findings are reported below: Nature of Assets Balance as Balance as Discrepancies Reasons of per the per Physical discrepancies, if any. cash book/ verification Stock register Cash in hand (RS) Postage stamps in hand 7 P a g e

8 Misc. Receipt books Saleable forms Un-used MBs PARA: 3. List of Verified Records 1. Cash Book Verified Yes/No Not produced 2. DCR Verified Yes/No Not produced 3. Admission Registers Verified Yes/No Not produced List of verified records will be auto generated by the system. PARA: 4. Financial Position Consolidated Financial Position of all Cash Opening Balance at the beginning of the year: Receipt during the Year under Review: Rs._ Total : Rs._ Expenditure during the Year under Review : Rs._ Closing Balance at the end of the year as per Review : Rs._ Rs. Closing Balance as per Cash Books : Rs._ Difference Rs._ 8 P a g e

9 PARA: 5. Bank Reconciliation Name of the A/C No. Closing Closing Difference Bank Balance in Balance in Pass Book As Bank as on mentioned in cash book PARA: 6. Stock Position Material/ Opening Receipt Issued Closing As per Difference Item Balance Balance stock As per register Audit PARA: 7. Investment Opening Balance of Investment as on Amount Invested during the year under Review Total _/_/ (DD MM YYYY) Amount Encashed during the year under Review Closing Balance as per Review / / (DD MM YYYY) Closing Balance as per Investment Ledger / /_ (DD MM YYYY) Difference 9 P a g e

10 PARA 8. Advance Advance Outstanding as on _/_/ (DD MM YYYY) Advance Paid during the Year under Review Total Advance adjusted during the Year under Review Advance Outstanding as per Audit as on / / (DD MM YYYY) Advance Outstanding as per Cash Book as on / / YYYY) (DD MM Difference Comments, if any: DETAILS OF ADVANCE OUTSTANDING FOR THE YEAR UNDER AUDIT DETAILS OF ADVANCE OUTSTANDING FOR MORE THAN A YEAR PARA: 9. Grants Grants Outstanding as on (At the beginning of the year) Grants Received during the Year under Review Total _1_1 (DD MM YYYY) Grants during the Year under Review Spent Grants unspent as on _/ / (At the end of the year) (DD MM YYYY) PARA: l0. Utilisation Certificate U.C. Outstanding for submission as on U.C. du for submission during the period under Audit Tota l U.C. Submitted during the period under Audit U.C. Pending for submission as on _/_/ (DD MM YYYY) _/_/ (DD MM YYYY) 10 P a g e

11 U.C. submitted during Audit [The following paras (11-20) will have unlimited space to mention the objections raised by the Audit along with recovery/surchargeable amount/amount held under objection/irregularity if any] PARA: 11. Misappropriation &Defalcation PARA: 12. Loss of Stock &Store PARA: 13. Audit of Receipts PARA: 14. Audit of Expenditure PARA: 15. Audit on Works PARA: 16. Audit on Units I Department (if any) PARA: 17. Audit on Schemes I Programmes (if any) 11 P a g e

12 PARA: 18. Miscellaneous PARA: 19. Audit of Loan/Deposits/CPF including Positions PARA: 20. Suggestions by Auditor PARA: Result of Accounts Review Result of Audit will be auto generated by the system based on the mandatory fields filled in different paras. PARA: Auditor Certificate A certificate regarding correctness or otherwise of the Accounts reviewed must be furnished by the Reviewer. PARA: Remark by Auditor General remarks by the Auditor about Review shall be mentioned Signature of the CA Date: 12 P a g e

13 Guideline for Preparation of Draft Accounts Review reports for Aided Colleges (1) TITLE SHEET : To be filled as per the Format (2) PHYSICAL VERIFICATION : To be filled as per the Format (3) LIST OF VERIFIED RECORDS : Category of Institution wise detail list of records and registers are prescribed. User has to click on appropriate checkbox provided against each record, if any record found missing in the list, user can mention it in the remark box. (4) FINANCIAL POSITIONS : Cash book wise details of Receipt and Expenditure are to be worked out and checked with reference to the Abstract Register of Receipt and Expenditure maintained by the Local Authority along with analysis of cash balance. In case of any non-maintenance the matter should be reported to competent authority. Only the abstract of financial position to be furnished with comments regarding maintenance of Annual Account and discrepancies if any. Details of discrepancies between cash book balance and balance as per review to be discussed. The abstract financial position of different accounts is to be furnished separately in tabular form (A sample template is given below for preparing Receipts and Expenditure statement for a financial year). The details of budgetary head wise receipt and expenditure statement supplied by the Local Authority/Worked out by Audit Personnel should be checked & submitted to the District Audit Office along with the Audit Objection Statements Original (Retuned)/Duplicate (Hard Copies) for that Auditee Institution. In the District Audit Office it is preserved as a permanent record for any future reference.. Openin Receipt Expenditur Sl. Head of Account g during Total e during Closing No. Balanc Balance e t he year the year I. GRANTS: 1.Govt. Grants 2.U.G.C. Grants 3.Grants from other Bodies II. OTHER THAN GRANTS: 1.Different Scholarships 2.GPF advance of Staff 3.Exam Expenses(Council&University) P a g e

14 ... etc. III. INTERNAL SOURCES: A. Fees and Fine:- a) Depositable b) Non-Depositable B. Students Fund:-...C. Others:.. (5) DETAILS OF CLOSING BALANCE AS PER BANK PASS BOOKS & CASH BOOK BANK BALANCE FIGURE : Reconciliation worked out by the local authority in respect of Bank Account balance and Cash Book balance are to be checked. In case of non-reconciliation comment should be furnished with a report to the competent authority. Account wise balance as per the formats and discrepancy between Bank A/C and balance shown in Cash Book are to be worked out. A sample template is given below for the purpose. Effort should be made to reconcile the difference as noticed in course of checking of Bank Account with reference to Cash Book. Bank Reconciliation Statement as on... Bank Account No... Name of the bank: Name of the bank branch: Balance as per Pass Book as on... XXX Add: XXX XXX Less: XXX XXX XXX Balance as per Cash Book as on... XXX 14 P a g e

15 15 P a g e (6) STOCK POSITION : The position of stock Accounts relating to building materials, if any, required for reference in subsequent accounts review should be furnished. Irregularities notices in maintenance of stock Account and Receipt and issue of materials along with nonrecovery of cost of materials are to be furnished. (7) INVESTMENT : Abstract position of investment (Fixed/Term Deposits) with details of C.B. are to be furnished with comment on irregularities on maintenance of investment ledger, process of investment and loss of the institution if any. (8) ADVANCE : (a) Abstract of advance position with comment on discrepancies between cash book figure and review figure. (b) Details of outstanding advance for more than a year and year under audit are to be furnished. (c) Comment on maintenance of advance ledger and outstanding advance ledger. (d) Comment on serious irregularities noticed in payment and adjustment of advance and non-adjustment of outstanding advance. (e) A sample template is given below (f) Details of advance adjusted during the year is also to be furnished for reference. Amount of Advance Name and Name and Voucher outstanding : Purpose designation designation of the of Sl. No.& Date of the Officer person against more payment No of payment responsible whom advance is For less of of Advance for payment outstanding than than One Advance of Advance One year year (9) GRANTS : (a) Abstract of Grant position as worked out during audit after checking the grant register maintained by the local authority or from the cash book etc. (b) Comment on unspent balance, diversion of grant, irregularities in utilisation of different categories of grants if any. (c) Comment on utilisation of matching contribution as per the norms of the grant in respect of the U.L.Bs. and other institutions. (d) Comment on maintenance of grant register. (10) UTILISATION CERTIFICATE : (a) Position of U.Cs. and details of U.Cs. submitted during the year are to be mentioned. (b) Comment on maintenance of U.C. register & pending U.C. (11) MISAPPROPRIATION & DEFALCATION : All kinds of misappropriation of cash detected during review are to be mentioned.

16 (12) LOSS OF STOCK & STORE : All kinds of loss of stock and stores detected during review are to be mentioned. (13) AUDIT OF RECEIPTS : (a) Irregularities notices in respect of all kinds of receipts in the accounts of an institution. (b) The D.C.B. position of Rent, Taxes, fees and other dues, comment on time barred dues and on maintenance of D.C.B. register in respect of U.L.Bs. & other institutions should be made on a Microsoft Excel sheet and should be pasted on respective sub paras. (c) The discrepancies, irregularities, loss in allotment, deposits and other dues in respect of development authorities are to be furnished. (14) AUDIT OF EXPENDITURE : (a) Irregularities noticed in respect of vouchers are to be mentioned. (b) Irregularities noticed in respect of establishment expenditure, T.A. and other claims are to be mentioned. (15) AUDIT ON WORKS : 100% checking of works vouchers with reference to Guidelines of scheme works, case records and M.Bs. stock account etc. And objection should be raised regarding execution of project (scheme wise) in the following manner. (1) Deviations from guideline of the scheme noticed during execution of project. (2) Excess and inadmissible payment noticed. (16) AUDIT ON UNITS/DEPARTMENT (IF ANY): Irregularities for each department/unit/division in respect of Universities, Development Authorities and other institutions are to be furnished in this para. (17) AUDIT ON SCHEMES/PROGRAMMES (IF ANY) Comment on irregularities notices in execution of different schemes/programmes with target & achievement (Scheme wise). Any deviation on implementation of the scheme/programme beyond guidelines and allotment of funds in general are to be mentioned. A detail report should be prepared at least in respect of one scheme/programme in an institution with comments and suggestions. (18) MISCELLANEOUS : (a) Any other kind of objection/suggestion beyond the above paragraphs notices in the accounts during review. (b) Position of fee fines, scholarship, student fund, in respect of Educational Institution with comment. (c) Any detailed Statement if required for review. (19) AUDIT OF LOANS /DEPOSITS/CPF INCLUDING POSITIONS : Position of loan, deposits, P.F., Royalty, VAT and P.T. need to be furnished in tabular form as applicable in an institution along with comments on repayment of loan, interest, penal interest etc. (20) RESULT OF AUDIT : (a) Certificate (b) Suggestion/Remark of the Auditors on maintenance of account (To be filled by Auditor) 16 P a g e

17 Annexure - 2 INVOICE Invoice No. Invoice Date: PAN No: Service Tax No: CA firm Registration with ICAI No: To From The Principal/Director, Name of the CA firm:. Address: Address Allotment Letter No. (issued by the Directorate of Local Fund Audit) Name of the College and Address Type of College Period of Review Distance from the office of the CA firms to the office of the college Details of Claim Professional fee Service Tax Total Travel, Accommodation and Subsistence cost Total Bank Account number Name of the Account Holder Name of the Bank Branch and Address Cheque/Demand Draft to be drawn in the name of (In case of cheque/demand Draft) A Category B Category C Category Kms. Amount I certify that the amounts claimed in this invoice have been wholly and necessarily incurred for the purpose of accounts review of. for the financial year (s) and have not been claimed before. Signature of the CA Name of the CA Date 17 P a g e